Concerns around stagflation are growing, driven by persistent inflationary shocks and a potential slowdown in economic activity associated with rising interest rates. At the same time, investors remain concerned about the impacts of climate change – which also continue to evolve. The range of risks that are on pension fund radars are expanding.
This article offers Ortec Finance’s view of the impact of the elevated uncertainty on pension providers. We focus on four types of risk that pension funds face. Many of these risks are operational and will need to be addressed in the short term. Others are financial and must be properly assessed against a range of scenarios to ensure all the implications are well understood. With this understanding in mind, pension providers can further assess their course of action in the long term.
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